Bank of Japan expected to lift growth outlook and signal future rate hikes amid market pressure
The central bank is set to raise economic forecasts while navigating yen depreciation and a snap election called by Prime Minister Sanae Takaichi in February.
Insights:
The Bank of Japan is expected to raise its economic growth forecast and signal readiness for further interest rate hikes at its policy meeting ending Friday, January 24, 2026. While the central bank is expected to keep borrowing costs steady at this two-day meeting, Governor kazuo ueda will face a critical policy dilemma. Markets are closely watching the US Dollar / Japanese Yen as the currency has fallen approximately 8% against the dollar since October 2025.
